DHL Express, a unit of logistics company DHL Group (DPWA.DU), on Tuesday announced a three-year agreement with Phillips 66, an integrated downstream energy provider and sustainable aviation fuel (SAF) producer, to deliver over 240,000 metric tons of SAF. The initiative is expected to reduce lifecycle greenhouse gas emissions by approximately 737,000 metric tons compared with conventional jet fuel, supporting DHL's commitment to achieving net-zero emissions by 2050.
Most of the SAF will be delivered to Los Angeles International Airport (LAX), DHL's U.S. West Coast Gateway, with future deliveries planned to other West Coast airports, including San Francisco International Airport (SFO).
The SAF will be produced at Phillips 66's Rodeo Renewable Energy Complex in California, one of the world's largest renewable fuels facilities, with an annual production capacity of 150 million gallons of neat SAF.
This agreement is one of the largest SAF deals in the U.S. air cargo sector and aligns with DHL Express's ongoing sustainability efforts, including its GoGreen Plus service, which helps customers reduce Scope 3 greenhouse gas emissions. Since 2021, DHL has been securing SAF partnerships globally across Europe, the Americas, and Asia Pacific.
"This agreement with Phillips 66 is a significant milestone for DHL Express as we work towards our sustainability goals. By securing a reliable supply of SAF, we are not only reducing our carbon emissions - and those within our customers' supply chains - but also setting a precedent for the logistics and air cargo industries in the U.S. Our collaboration with Phillips 66 underscores our commitment to a lower-carbon future and demonstrates the importance of sustainable practices in our operations," said Travis Cobb, EVP Global Operations and Aviation at DHL Express.
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